Demolition Insurance that won't bring the house down.

This depends on your business and who has been contracted for the job. If you are considered the head contractor who holds the agreed contract with the customer and you are invoicing them for the works inclusive of demolition works then you also need to be covered. 

Construction and demolition projects have seen a significant increase in claims that are settle on a proportionary basis – this means that even if you aren’t 100% liable, you can be held liable for a smaller percentage. 

If you were even found 5% liable for an injury that occurred on a demolition job and your policy didn’t include demolition insurance then those costs will not be covered. 

Each insurance policy is written on a specific basis where a product disclosure statement (PDS) outlines what is and isn’t covered. In addition to this depending on your business activities some insurers can apply additional endorsements to you policy which may extend, reduce or limit certain aspects of your cover. It is important that you review these endorsements or discuss them with your business insurance broker as to how the apply to you.

Some exclusions that we typically see on demolition insurance policies are:

• Exclusions for demolition methods which are designed to demolish a structure in one sudden and uninterrupted process for example: ball and chain demolition, blasting or explosives
• Hazardous waste exclusions for handling and disposing of hazardous waste (unless a combined demolition and asbestos cover is in place)
• Height limits of up to 15 metres may apply (unless agreed and declared to the insurer for an increased limit)

A Public Liability policy is designed to cover your business engaging in the activities as a demolition contractor. This type of policy isn’t designed to cover damage to the property that is being demolished however, it is designed to cover any damage caused which you are liable for in conjunction with your policy coverage.

Some of the common claims that we have been involved in are for things like:

• Debris flyaway causing damage to surrounding properties
• Damage caused to other machinery on site
• Injury caused to other contractors

This is a common question and it is important to note that a sub-contractor working under their own ABN is essentially a separate business to yours. Whilst it is likely that your policy will provide cover to you where a sub-contractor acting on your behalf causes personal injury or property damage to a third party it is common that when they are solely negligent an insurer may attempt recovery from this contractor. When declaring contractors on your public liability insurance insurers may impose a condition on your policy that each contractor hold their own public liability insurance policy to support their chances of recovery.

Typically, home owners insurance may cover the costs of demolition if it’s required due to an insured event, such as a fire or storm. If your home is damaged to the extent that it needs to be demolished and rebuilt, the policy might include demolition costs as part of the building sum insured. However, it’s crucial to check the specifics of your policy and its inclusions and exclusions. Always consult with your insurance provider to understand the extent of your coverage and any conditions that apply.